The bill H.334 aims to limit the use of noncompete agreements and stay-or-pay provisions in employment contracts in Vermont. It introduces a new section, 21 V.S.A. 495q, which declares any noncompete agreement void and unenforceable, with specific exceptions for agreements related to the sale of business interests or the dissolution of partnerships and limited liability companies. The bill also mandates that employers notify employees of any existing noncompete agreements that are now considered void. Additionally, it outlines employee rights and protections against retaliation for exercising these rights.

Furthermore, the bill establishes a new section, 21 V.S.A. 495r, addressing stay-or-pay provisions, which require employees to repay employers upon separation from employment. Such provisions are deemed unlawful unless they meet specific criteria, including voluntary employee agreement and reasonable repayment amounts. Employers are also required to notify employees of any existing stay-or-pay provisions that violate the new law. The bill emphasizes the protection of employee rights and prohibits retaliation against employees who choose not to enter into these agreements. The act is set to take effect upon passage.